THE PRESIDENT'S DAILY BRIEF 30 JULY 1974

• Document Type: FOIA
• Collection: President's Daily Brief 1969-1977
• Document Number (FOIA) /ESDN (CREST): 0006007778
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: August 14, 2016
• Document Release Date: August 24, 2016
• Publication Date: July 30, 1974

. I
Declassified in Part- Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A01*2200010026-3
The President's Daily Brief
July 30, 1974
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010026-3
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010026-3
Exempt from general
declassification schedule of E.O. 11652
exemption category 513(
declassified only on approval of
the Director of Central Intelligence
Declassified in Part - Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936A012200010026-3
Declassified in Part -Sanitized Copy Approved for Release 2016/07/15 : CIA-RDP79T00936-A012200010026-3
FOR THE PRESIDENT ONLY
THE PRESIDENT'S DAILY BRIEF
July 30, 1974
PRINCIPAL DEVELOPMENTS
The Cyprus peace talks in Geneva recessed last
night without agreement on language to describe
Turkish troop withdrawals. Foreign Secretary Cal-
laghan predicts a final decision early today.
(Page 1)
Egypt
the USSR. (Page 2)
the USSR is keeping a
close watch on the situation in Hungary following
the removal of several prominent liberals from key
party posts this spring. (Page 3)
Chinaj
I (Page 4)
The party leadership in Peking has imposed tighter
restrictions on wall poster attacks against Chinese
officials and is taking steps to prevent the anti-
Confucius campaign from disrupting the economy.
(Page 5)
Iraq and Egypt have moved toward improved relations
with an agreement on joint economic projects valued
at $700 million. (Page 6)
President Velasco has named one of Peru's most
radical military leaders as his choice to succeed
him if he dies or steps down in the next year.
(Page 7)
Notes on Portuguese
and on an Israeli
on Page 8.
mobilization exercise appear
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FOR THE PRESIDENT ONLY
CYPRUS
The Geneva talks recessed last night without
agreement on the language to be used in describing
Turkish troop withdrawal. Foreign Secretary Calla-
ghan predicts that a final decision will be made
early today.
Turkish Prime Minister Ecevit told the press
yesterday that his government might sign the tripar-
tite resolution if it includes a formula providing
for the gradual evacuation of Turkish troops from
Cyprus at an "appropriate" time. The talks have
been unable to deal with the timing of Turkish evac-
uation. Athens would want it to begin as soon as
possible, but Ankara will not reduce its troops on
Cyprus until a final solution is negotiated that en-
sures the security of Turkish Cypriots on the island.
The Turkish military is apparently encouraging
the government to take a hard line in the peace talks.
Foreign Minister Gunes--in an attempt to justify his
efforts to negotiate an agreement more favorable to
Ankara--told Foreign Secretary Callaghan that his
government is having great difficulty with its gen-
erals.
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FOR THE PRESIDENT ONLY
USSR-EGYPT
2
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USSR-HUNGARY
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The political
atmosphere in Budapest has
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been
somewhat
tense following the removal of sev-
eral
prominent
liberals from key party posts
this
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spring
? Hungarian leaders have taken selective, pre-
ventive measures over recent weeks to intimidate
protesters. A reliable embassy source reported,
for example, that in early July the Hungarian po-
lice arrested several dissidents and held them
briefly. This unusually harsh measure indicates
that the Hungarian leaders were taking a no-nonsense
approach
Moscow's desire to keep a close eye on Hungary
reflects Soviet awareness that dissatisfaction in
Eastern Europe, whatever the immediate causes, can
easily touch off latent anti-Soviet feeling there.
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CHI HA
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FOR THE PRESIDENT ONLY
CHINA
The party leadership in Peking has imposed
tighter restrictions on wall poster attacks against
Chinese officials and is taking steps to prevent the
anti-Confucius campaign from disrupting the economy.
Lately, the posters themselves have been fewer
in number, and the new ones often include appeals
for unity and professions of respect for Chinese
leaders. Several Chinese officials have said that
accusations made in the posters are being investi-
gated, but it appears that no action has yet been
taken against the targets of poster criticism.
the final ar-
biter of whether the charges are justified is Chou
En-lai.
On the economic front, Chinese media have been
giving prominent attention to a recent party direc-
tive calling upon workers to concentrate on increas-
ing production. The directive has also been the
subject of several wall posters. Peking clearly
does not want the anti-Confucius campaign to inter-
fere with farm or factory production. There have
been numerous reports that political agitation has
caused factory slowdowns during recent months.
FOR THE PRESIDENT ONLY
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IRAQ-EGYPT
Baghdad and Cairo have moved :toward improved .
relations with an agreement on joint economic proj-
ects valued at $700 million. The biggest single
project is construction by Egyptians of $450 mil.-
lion worth of. .housing in Iraq. The two countries
are prepared to discuss further joint ventures
worth an additional $300 million. Together, these
agreements would make up the second largest invest-
ment _and trade package obtained by Egypt since the
end of the October war. In essence, they combine
Egyptian technical capabilities with Iraqi linanc-,
ing; the Iraqis expect $7 billion in oil revenues
this year, and they: are likely to have a huge sur-
plus.
Iraq has been trying in recent weeks to lessen
its isolation within the Arab world, caused largely
by its opposition to the Arab-Israeli negotiations,
and to develop a more balanced international pos-
ture. Baghdad has also appeared to be somewhat
restive over its close ties with Moscow.
Aside from the economic advantages, Cairo
probably welcomes better relations with: Baghdad,
in part because '.they help show. that Egypt. is still
the center of the Arab world.
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FOR THE PRESIDENT ONLY
PERU
President Velasco has named one of Peru's most
radical military leaders as his choice:to succeed
him if he dies or steps down.in the next year for
health reasons.
Velasco's choice is army General Jose Graham,..chaef,
of the Presidential AdvisOry,Committee. Velasco
had not previously picked any successor, and even
now it is the three-man Revolutionary Junta, not
the President alone, who formally nal-nes him.
There have been other signs that Velasco has
become more concerned in recent months with
ping up up the pace of the radical overhaul of Peru-
vian society. The selection of Graham would. mean
a further hardening. of authoritarian policies.
The press law announced on July 26, which.
control of all major newspapers to the government,
reflects this attitude.
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NOTES
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Portugal
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Israel: A Tel Aviv press report says Israel
will conduct a large-scale mobilization exercise
within the next few weeks. A large number of re-
servists will be called up to test the mobilization
system and reserve procedures in light of difficul-
ties experienced and lessons learned during the Mid-
dle East war last October. Although Israeli reserv-
ists are recalled annually for training, a testing
of the mobilization system and its public announce-
ment are unusual. The Arabs can be expected to
decry the planned mobilization as a manifestation
of Israel's continuing "militancy," but thus far
there have been no charges that the anticipated Is-
raeli exercise is anything more than a test.
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Top Secret
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